Traders say DLF is being hit by perceptions of its ties with the ruling Congress party, which is trailing badly in polls ahead of elections concluding next month.

"I would say DLF has been falling on some perceptions of political connections to Congress and the company's lingering debt burden," said G. Chokkalingam, founder of research and fund advisory company Equinomics.

A DLF spokesman declined to comment. "As per our company policy, we do not comment on market speculation."

DLF has lost around 13.7 percent so far in April, far under-performing rivals.